OPERATIONS EXCELLENCE FINAL EXAM
2025 QUESTIONS WITH CORRECTLY
SOLVED ANSWERS!!
1 of 53
Term
You arrive at the airport and wonder to what extent the security
checkpoint is a lean operation. Among other things, you observe
that it takes about 30 seconds to check an ID, scan a passenger for
weapons, and X-ray their luggage. However, the average customer
spends about 20 minutes in the process. This observation is an
example of which of the following?
Waste of capacity
Waste of a flow unit's time
,Waste of materials
This observation is unrelated to lean.
Give this one a try later!
Boxes per day = (3.2 turns × 350) /
Finished goods inventory 30 = 37.33
Cost of goods sold Waste of a flow unit's time
Don't know?
2 of 53
Term
What are the two pillars of the Toyota Production System?
a Just-in-time and waste reduction
b Waste reduction and built-in quality
c Built-in quality and just-in-time
d Process improvement and waste reduction
Give this one a try later!
Boxes per day = (3.2 turns × 350) / 30 = 37.33
Cost of goods sold
, b Waste reduction
The roof is the reduction of waste by better matching supply with demand. This
includes the waste of time of the flow units and the waste of resources.
c Built-in quality and just-in-time Correct
Don't know?
3 of 53
Term
What is the roof in the "house-shaped" representation of the Toyota
Production System?
a Just-in-time
b Waste reduction
c Built-in quality
d Process improvement
Give this one a try later!
Cannot be determined
Turns is the ratio of Sales to Inventory. Just because produce A has the lower
turns doesn't mean that it has the higher amount of inventory. Product A could
have sales of $10,00 per year and product B could have sales of $100,000 per
year.
, c Built-in quality and just-in-time Correct
b Waste reduction
The roof is the reduction of waste by better matching supply with demand.
This includes the waste of time of the flow units and the waste of resources.
Turns = 365 days / 20 days inventory = 18.25 turns.
$50 shoe / 18.25 turns = $ 2.74 average inventory.
$2.74 average inventory × 35% = $0.96 holding cost
Don't know?
4 of 53
Term
A newsvendor orders the quantity that maximizes expected profit for
two products, X and Y. The critical ratio for both products is 0.8. The
demand forecast for both products is 9,000 units and both are
normally distributed. Product X has more uncertain demand in
the sense that it has the larger standard deviation. Of which of
the two products does the newsvendor order more?
Product X because it has less certain
demand. Product Y because it has more certain
demand.
The order quantities are the same because they have the same
critical ratio.
2025 QUESTIONS WITH CORRECTLY
SOLVED ANSWERS!!
1 of 53
Term
You arrive at the airport and wonder to what extent the security
checkpoint is a lean operation. Among other things, you observe
that it takes about 30 seconds to check an ID, scan a passenger for
weapons, and X-ray their luggage. However, the average customer
spends about 20 minutes in the process. This observation is an
example of which of the following?
Waste of capacity
Waste of a flow unit's time
,Waste of materials
This observation is unrelated to lean.
Give this one a try later!
Boxes per day = (3.2 turns × 350) /
Finished goods inventory 30 = 37.33
Cost of goods sold Waste of a flow unit's time
Don't know?
2 of 53
Term
What are the two pillars of the Toyota Production System?
a Just-in-time and waste reduction
b Waste reduction and built-in quality
c Built-in quality and just-in-time
d Process improvement and waste reduction
Give this one a try later!
Boxes per day = (3.2 turns × 350) / 30 = 37.33
Cost of goods sold
, b Waste reduction
The roof is the reduction of waste by better matching supply with demand. This
includes the waste of time of the flow units and the waste of resources.
c Built-in quality and just-in-time Correct
Don't know?
3 of 53
Term
What is the roof in the "house-shaped" representation of the Toyota
Production System?
a Just-in-time
b Waste reduction
c Built-in quality
d Process improvement
Give this one a try later!
Cannot be determined
Turns is the ratio of Sales to Inventory. Just because produce A has the lower
turns doesn't mean that it has the higher amount of inventory. Product A could
have sales of $10,00 per year and product B could have sales of $100,000 per
year.
, c Built-in quality and just-in-time Correct
b Waste reduction
The roof is the reduction of waste by better matching supply with demand.
This includes the waste of time of the flow units and the waste of resources.
Turns = 365 days / 20 days inventory = 18.25 turns.
$50 shoe / 18.25 turns = $ 2.74 average inventory.
$2.74 average inventory × 35% = $0.96 holding cost
Don't know?
4 of 53
Term
A newsvendor orders the quantity that maximizes expected profit for
two products, X and Y. The critical ratio for both products is 0.8. The
demand forecast for both products is 9,000 units and both are
normally distributed. Product X has more uncertain demand in
the sense that it has the larger standard deviation. Of which of
the two products does the newsvendor order more?
Product X because it has less certain
demand. Product Y because it has more certain
demand.
The order quantities are the same because they have the same
critical ratio.
